Australian Vintage Limited (ASX: AVG) has announced its audited full-year results for 2025, reporting overall sales of $257 million, which is a 1% decrease from the previous year. Despite the decline in sales, the company's focus on cash flow through cost-cutting measures resulted in an improvement in earnings. However, these earnings still fall short of company targets. The underlying earnings improvement led to an EBITDAS of $15 million and an EBITS of $1 million, while the net profit after tax (NPATS) recorded a loss of $6 million compared to FY24 results. This financial performance includes a one-off expense of $6 million related to the first-time implementation of waste management legislation in the UK, known as Extended Producer Responsibility $(EPR)$. Australian Vintage is executing a strategy to maintain its core brands in a softening wine market, invest in innovation for revenue growth, and expand into new markets across China, Asia, and the Americas. The company is also working to bring wine supply in balance by reducing fixed grape supply, selling excess bulk wine, and increasing flexibility in grape sourcing. These efforts aim to achieve a free cash flow neutral position by the end of FY26, with expectations of generating $10 million in free cash flow by FY27 and $20 million annually by FY28.